Technological change, local capabilities and the problem of restructuring

Abstract

This paper illustrate the interrelation between a major economic project and the production of local capabilities, how these capabilities are reproduced and at the end block new developments after technological change/globalization has killed the dominant project. The paper describe the development of a one company town from the start in 1907 to contemporary problems of stabilising a new economic base thirty years after the down scaling of the large plant started. The locality was based on a major factory in the chemical industry. This underwent major on-site reconstruction caused by technological breakthroughs early in this century and partly and later full relocation caused by competing technologies. Since than local and national authorities have been actively working with the development of a new economic base for the community. The analytical approach is based on structuration theory focusing on the creation of social systems and the development of institutions, routines, learning systems, in short social/cultural, economic/technological capabilities among individuals and institutions in this community. History and space are seen as important elements in the production of local capabilities. Learning theory, theories of innovation systems and development of economic capabilities are integrated into the analysis. The domination and routinization of economic life explains the capabilities of the place and the narrow skills of two generations of individuals. These attitudes and skills blocks alternatives and the development of a more entrepreneurial approach to the restructuring problem. First with a new generation released from the former dominant culture, dynamic forces seems to be introduced.